Weakened Chinese market sees Salvatore Ferragamo sales dip by over 18%

Italian luxury label Salvatore Ferragamo has reported revenues were down by 18.3% to £195 million (€227 million) for the three months ending 31 March 2024.

Salvatore Ferragamo, renowned for its leather footwear offering, reported that its DTC channel posted a decrease of 11.1% in sales compared to the year prior. The company put this down to a volatile consumer environment in Greater China. Wholesale registered a decrease in net sales by 38.3%, reflecting a "weak environment".

In terms of geographical locations, the EMEA region saw sales dip by 30.8%, mainly due to the wholesale business. North America recorded a sales decrease of 10.9% and Central and South America's sales were down by 8.6%.

Asia Pacific registered a 19.3% decrease. Greater China and Korea were impacted by weak consumer sentiment, however, the rest of the region saw positive sales benefitting from an increase in travelling. The Japanese market registered a 15.7% decrease.

Marco Gobbetti, Chief Executive Officer and General Manager at Salvatore Ferragamo, said: "Over recent quarters, we have continued to implement our strategy of a refreshed Ferragamo, a new product offer, a communication model focused on creating awareness for the renewed brand, a redesigned and more efficient customer experience through CRM optimization and a new store concept.

"In combination, these activities have increased brand desirability and as we roll out the new product offering, this has gained good recognition from across the media and industry.

"Over the quarter, our performance was impacted by continued volatility in the Chinese market, as well as a persisting weakness in wholesale and travel retail, further compounded by an unfavourable comparison.

"We continue to invest along our established strategic priorities whilst protecting profitability through our ongoing attention to the quality of our sales and operating capability."